Gallelli MARKET REPORTS
Vacancy for shopping center space in the Sacramento region stood at 7.5% as of the end of Q1 2026, reflecting a slight uptick from the 7.2% rate recorded at the close of 2025. Since Q4 2023, vacancy has consistently hovered at or near the current mark of 7.5%, never moving more than 20 basis points in either direction. This is particularly notable because both 2024 and 2025 were years in which national chain bankruptcies and store closures were elevated, with the liquidation of major chains like Rite Aid, Joann Fabrics, Party City, Francesca’s, Forever 21, and others resulting in thousands of store closures nationally and dozens across the Sacramento region. Despite this, the market has remained resilient with most of the properties impacted by these space givebacks, typically landing tenants within nine to 12 months of storefronts going dark.
Q1 Report
As of the close of Q3 2024, overall shopping center vacancy in the Sacramento region stood at 7.6%, down slightly from the 7.8% rate of three months ago. One year ago, this metric stood at 7.9%. The market recorded positive net absorption of 96,000 square feet (SF) in Q3. Occupancy growth has remained in positive territory in two of the past three quarters, with the market having absorbed 221,000 SF of product year-to-date.
Q1 Report Q2 Report Q3 Report Q4 Report
As of the close of Q4 2023, overall shopping center vacancy in the Sacramento region stood at 7.9%. While this reflects a modest decline from the 8.0% vacancy rate of three months ago (Q3), this metric climbed over the course of 2023. One year ago, local vacancy stood at 7.5%. Yet, the trend has played out unevenly. Just five of the region’s 14 submarkets ended 2023 with increased vacancy levels.
Q4 Report Q3 Report Q2 Report Q1 Report2022 was another strong year for retail commercial real estate in the Sacramento region with an overall vacancy rate at 7.7% to close out the 4th quarter. With continued robust demand and nominal new construction, we have experienced positive net absorption and a relatively tight retail market. Despite Federal Reserve rate hikes, consumer spending in the region was still strong with retailers overall performing well in 2022.
Q4 Report Q3 Report Q2 Report Q1 ReportAfter finishing the final half of 2025 with two consecutive quarters of modestly declining occupancy levels, the Sacramento region returned to positive territory in Q1 2026, with 92,000 square feet (SF) of positive net absorption. This drove overall vacancy in the region downward from last quarter’s reading of 16.2% to the current rate of 16.0%.
Q1 ReportAt the close of Q3 2024, office vacancy in the Sacramento market stood at 16.8%. This reflects an increase from the 16.4% rate recorded just three
months ago with the increase driven primarily by a few key large space givebacks from the region’s largest office tenant, the State of California.
Q1 Report Q2 Report Q3 Report Q4 Report
Since the first quarter of 2020 (when the pandemic spread across North America), the Sacramento office market has recorded positive net absorption in just three of 15 quarters. The first time this occurred was in Q3 2020, when the market recorded a modest 43,000 square feet (SF) of positive net absorption—largely due to space users occupying space from deals that largely had been in the works since before the Covid crisis outpacing the trend of space givebacks that, at the time, had only just begun.
Q4 Report Q3 Report Q2 Report Q1 Report
As of the close of Q4 2022, overall office vacancy in the Sacramento region stood at 14.9%. This reflects an increase from the 14.5% rate posted three months ago and the 13.9% level recorded one year ago. The market recorded 257,000 square feet (SF) of negative net absorption in Q4.
Q4 Report Q3 Report Q2 Report Q1 ReportAs of the close of Q1 2026, industrial vacancy in the Sacramento region stood at 8.1%, the highest rate that the market has recorded since Q3 2016 when it last stood above the 8.0% mark (8.5%). This was the fourth consecutive quarter of climbing vacancy rates, despite the fact development levels have fallen significantly since 2024.
Q1 Report
At the end of 2025, industrial vacancy across the Sacramento market stood at 7.4%. This reflects a slight uptick from the 7.2% rate that was in place just three months ago, and a more substantial increase from the 6.5% rate of a year ago. Vacancy inched upward in three of four quarters in the past year, driven by both an increase in availability (both direct and sublease), and the impact of new
construction.
Industrial vacancy in the Sacramento region increased slightly from 6.1% to 6.2% in Q3 2024. The market recorded -176,000 SF in negative net absorption over the past three months. Deal activity (gross absorption) picked up slightly in Q3. We tracked just over 2.1 million square feet (MSF) in total transactions, up from 1.9 MSF in Q2. Despite this, a few major space givebacks in the Davis/Woodland submarket outpaced occupancy gains elsewhere to tilt the market into the red.
Q1 Report Q2 Report Q3 Report Q4 ReportAs of the close of Q4 2023, industrial vacancy in the Sacramento region stood at 5.9%. This reflects a substantial uptick from Q3’s recorded rate of 4.6%. Developers added more than 2.0 million square feet (MSF) of space in Q4,
making this one of the strongest quarters for new construction that the market has ever experienced (there are only four occasions in the past 25 years in which more than two million square feet of new product came online in a single quarter).
As of the close of Q4 2022, total industrial vacancy in the Sacramento region stood at just 4.0%. While this reflects a slight uptick from the 3.8% mark of three months ago and a more substantial increase over the 3.5% reading of Q4 2021, it still reflects an incredibly tight marketplace.
Q4 Report Q1 ReportMultifamily vacancy in the Sacramento region stood at 6.7% as of the close of Q1 2026, up from the revised 6.5% reading of three months ago and the 6.2% rate posted a year ago. After hitting a local record low of just 3.0% in Q2 2021, developers rushed to catch up with underserved demand with the market experiencing one of the more aggressive growth cycles in its recent history. Not surprisingly, throughout this period vacancy levels across the region have been on a steady upward trajectory as more inventory was delivered to market. In the 19 quarters since Q2 2021, vacancy has decreased only twice with new supply (deliveries) consistently outpacing renter demand (net absorption). That trend played out once again in Q1 2026, though with vacancy levels starting to creep in on the 7.0% threshold, the pendulum has now swung in favor of tenants with rental rate growth starting to reflect this shift.
Q1 ReportAs of the end of Q3 2024, multifamily vacancy in the Sacramento region stood at 6.1%. This reflects a slight uptick from the 5.9% rate posted just three months ago. This increase in vacancy comes even though the market posted increased positive net absorption in Q3. Multifamily occupancy increased by 1,069 units in Q2, with occupancy growth increasing 17.5% to 1,257 units in Q3.
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Multifamily vacancy in the Sacramento region climbed over the final three months of 2023 to 6.7%, up from Q3 2023’s revised reading of 6.2%. One year ago, this metric stood at 5.9%, but vacancy increased in all but one quarter in 2023. Since reaching a local record low of 3.2% in Q2 2021, vacancy has inched up in eight of the last ten quarters. But as distressing as a three-year trend of increasing vacancy may sound to some, it is critical to note that typically multifamily vacancy
in the 5.0% to 7.0% range is considered healthy.
Apartment vacancy in the Sacramento market posted its sixth consecutive quarterly increase during the final three months of 2022, closing the year at 6.7%. Our data only tracks competitive multifamily projects with a minimum of 25 units and does not include smaller complexes or fourplexes, nor does it include senior, student, or Section 8 housing.
Q4 Report Q1 Report